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Hire an ex-con, get a tax break

May 28, 2008

We all know our taxes help pay for necessary societal services, such as building and maintaining highways, paying the salaries of law enforcement officers and running the jails that house some of the folks lawmen catch.

Get_out_of_jail_free_card_2
And now, in addition to collecting taxes to help operate its lock-up, Philadelphia is offering a tax credit that it hopes will lessen the need for the facility.

Philly Mayor Michael Nutter
announced last month a program that gives $10,000
a year in municipal tax credits to companies that hire former prisoners
and provide them tuition support or vocational training.

"This is one of the best crime-prevention programs we’ll ever have," Nutter said.

Spend some now to save more later: The reasoning is that it is more cost-effective to spend some tax money to help ex-felons find and keep jobs than to keep spending it to lock them up again if they revert to crime because they can’t find any other options.

For the first time in U.S. history, more than one of every 100 adults
is in state or federal jail or prison, according to a study by the University of Pennsylvania’s School of Social Policy and Practice. The study also cites federal statistics showing that nearly two-thirds of released inmates are expected to be
rearrested within three years.

"The spending on corrections is consuming a larger and larger percentage of state and local budgets," Michael Thompson, director of the Council of State Governments Justice Center, told the Associated Press. "When you’re spending it on this, you’re not spending it on other government priorities."

Other cities, similar approaches: In addition to Philadelphia’s tax-driven efforts, Baltimore, Chicago and San Francisco have agencies dedicated to ex-offenders. Oregon and Oklahoma established statewide councils last year to study initiatives to help former prisoners re-enter society.

And on the federal level, the Second Chance Act became law in April. It authorizes more than $330 million over two years to help government agencies and nonprofit groups lower recidivism.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • Hi Kay,
    Hope this works. Looks like taxes can be used as a carrot and a stick for various things…
    Hope all is well with you.
    Best
    Lubna

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